Sunday, January 31, 2016

A New
Year and the end of blizzard-cold month: Two topics of no joy: 1) High Utility Bills
and 2) Taxes.

Want
to take it on? Check out http://www.dsireusa.org/.
At the site, you enter your zip code and see an extensive list of incentives,
grant opportunities, tax credits and policies that support renewable energy and energy efficiency for your area. Some
of the Federal Residential Tax Credits require you to make the purchases
in 2016. It may be a good time to consider this the year to make that
investment, reducing both your tax liability and your energy costs in the long run.

Friday, January 15, 2016

I often hear people tell me
when they talk about personal finance that “I don’t need to be rich, I just
want to make enough money where I can buy what I want without worrying.”So….how much money it that?

To be honest, I don’t have a
good answer. A few years back the Wall
Street Journal posted an article that it takes an annual salary of $75,000
before you have diminishing returns on the dollars you spend. In other words, $75,000 salary is the minimum
you can make to maximize your happiness.
But is that the answer for you.

I think that wealth people
always worry about money and are constantly asking themselves is the value
received for the dollars spent worth it.
They do not want to waste money on bad investments or buying things not
of value to them.

I don’t define wealth as a
dollar figure, or a net worth figure. I
define personal wealth as being happy with yourself, knowing your personal
values, and living out those values….being happy where your feet are. You are wealthy when you don’t have to worry
about buying things, because you have saved for the items and they fit your
personal values.

How do you get to this
personal wealth?

1) Know what you value and where you spend your money. If you want to see what you value, look at
where you spend your time and money. I
encourage you to write down where you spend every penny for one month, evaluate
it weekly, and reflect on if this spending is in accordance with what you
value.

2) Look for little leaks
where you spend money and receive little or no value. Can you substitute spending money on this
item for something else? The little leak
that is common for many is eating out, especially lunch. You can easily spend $10 a day on lunch; $50
a week; $2,600.00 a year. It is worth it
or can you pack your lunch and save money.

3) Set a budget. Look at
where you have spent money the past month, and categorize your spending, i.e.,
groceries, dining, fuel, electricity, Internet, TV, housing, etc. Do you have enough money for all of your
expenses? If not, you either need to cut
back or make more money. Look for the
little leaks in your spending where you can cut back without drastically
changing your life style. Ben Franklin
said it best when he said “Little leaks can sink a mighty ship.” You should stop as many leaks in your
personal finances as possible.

4) Set goals. Setting goals keep you motivated. Do you want to pay off your credit cards in
the next 6 months? Do you want to buy a
new car? Do you want to go on vacation? Figure the cost and establish weekly or monthly
steps to achieve your goals.

5) Celebrate. When you achieve your goals,
you now have enough money to do the things you want without worry because you
have have the resources for them. You are now
wealthy. You don’t have to make a lot of
money to be wealthy.